Artificial　intelligence　(AI)　plays　a　significant　role　in　realizing　sustainable　economic　development.　This　paper　uses　the　textual　content　of　annual　reports　of　listed　companies　to　count　73　words　frequencies　related　to　AI　and　construct　AI　indicators　through　precise　vocabulary.　It　also　examines　how　AI　affects　environment,　social,　and　governance　(ESG)　performance　at　the　firm　level　using　unbalanced　panel　data　of　Chinese　listed　firms　from　2007　to　2022.　The　results　indicate　that　the　development　of　artificial　intelligence　has　significantly　improved　the　ESG　performance　of　Chinese　listed　companies,　and　the　conclusion　still　holds　after　a　series　of　robustness　tests.　As　a　moderating　variable,　macroeconomic　policy　uncertainty　reinforces　the　positive　impact　of　AI　on　ESG　performance.　In　terms　of　the　impact　mechanism,　AI　enhances　firms＇　ESG　performance　by　increasing　firms＇　total　factor　productivity　and　R&D　expenditures.　The　results　of　heterogeneity　analysis　show　that　AI　has　a　significant　positive　impact　on　the　ESG　performance　of　non-state-owned　firms,　firms　with　executives　without　overseas　backgrounds,　and　technology　and　capital-intensive　firms.　Compared　with　the　western　region,　AI　in　the　eastern　and　central　regions　has　a　more　significant　improvement　effect　on　ESG　performance.　Our　study　deepens　the　knowledge　and　understanding　of　the　role　played　by　AI　in　the　green　development　process　at　the　micro　level.　It　provides　valuable　suggestions　and　reflections　for　promoting　AI　development　at　the　micro-enterprise　level.